Digi Power X Inc. (DGXX) Earnings
Digi Power X Inc. is expected to report next earnings on August 13, 2026 (in NaN days), with a consensus EPS estimate of $-0.05. DGXX has beaten EPS estimates in 4 of its last 9 reported quarters (average surprise -17.2% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 15, 2026 | $-0.05 | $-0.07 | -40.0% | $7M | -39.2% |
| Mar 31, 2026 | $-0.14 | $-0.31 | -121.4% | $9M | +8.9% |
| Nov 13, 2025 | $-0.11 | $-0.03 | +72.7% | $8M | -26.9% |
| Aug 14, 2025 | $-0.35 | $-0.28 | +20.0% | $8M | -23.9% |
| Mar 31, 2025 | $-0.15 | $-0.10 | +33.3% | $9M | -40.8% |
| Nov 14, 2024 | $-0.13 | $-0.17 | -30.8% | $9M | -24.7% |
| Aug 14, 2024 | $-0.22 | $-0.16 | +27.3% | $9M | +13.9% |
| Apr 2, 2024 | $-0.02 | $-0.19 | -750.1% | $13M | +40.2% |
| Mar 29, 2024 | $-0.04 | $-0.34 | -750.0% | $11M | +20.4% |
| Nov 13, 2023 | — | $-0.11 | — | $5M | — |
| Aug 14, 2023 | — | $-0.12 | — | $6M | — |
| Mar 31, 2023 | — | $0.02 | — | $4M | -62.0% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 15, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- **Strategic Transition Status**: Q1 2026 marked an inflection point for the company's strategic pivot from cryptocurrency mining to AI computing and co-location infrastructure. Management framed the pivot as the most consequential strategic decision in the company's history, prompted by compressed, cyclical Bitcoin mining economics and massive generational growth in demand for AI compute infrastructure. - **Balance Sheet & Liquidity**: As of March 31, 2026, the company held $73 million in cash and cash equivalents, working capital of $67.2 million (compared to negative $0.8 million in Q1 2025), $14.6 million in digital asset holdings (up 208% year-over-year), $26 million in net fixed assets (up 29% year-over-year), and zero long-term debt. As of May 15, 2026, the company held approximately $125 million in cash and cash equivalents, $15 million in digital assets, and had deployed $45 million in year-to-date capital expenditure for GPU equipment and data center build-out, concentrated at the Colombiana, Alabama facility. - **Operational Progress**: The 120, 24-month contract with a top-tier AI customer was delivered on schedule, and the first GPU as a service revenue was recognized in May 2026 using NVIDIA B200 and B300 GPUs deployed at the Alabama facility. Phase one of the Colombiana Alabama AI campus is on track to be ready for service in December 2026, with full completion expected in Q1 2027. The company owns a portfolio of four power-rich sites across Alabama, Niagara Falls, North Carolina, and Buffalo accumulated over 10 years, with pre-existing utility interconnections and owned substations, plus an on-site combined cycle gas power plant, enabling fast speed-to-market for AI infrastructure expansion. The company currently has 210 megawatts of grid-connected power available for AI revenue conversion, with an additional 180 megawatts expected by the end of 2028 for a total of 393 megawatts of secured capacity. The company also holds an option for a 1.3 gigawatt site in West Virginia for exponential long-term scaling. - **Dual Business Model**: The company operates two complementary AI-focused business lines: (1) NEO Cloud V GPU as a Service, a vertically integrated GPU cloud offering that generates higher margin revenue per megawatt, and (2) long-term co-location, which provides stable, predictable 10-year revenue streams without requiring the company to invest heavily in customer GPUs. The dual model optimizes revenue per megawatt of the company's owned power capacity.
Guidance
- Construction and deployment: Phase 1 of the Colombiana Alabama AI campus will be ready for service in December 2026, with full phase 1 completion in Q1 2027. A total of ~40 megawatts of AI infrastructure will be activated by Q1 2027 (15 megawatts of co-location by December 2026, plus an additional 25 megawatts in Q1 2027, alongside ~7 megawatts of GPU as a service capacity by early 2027). - Annual revenue run rate targets: Management targets a $300 million annual run rate in 2027, a $450-$500 million annual run rate in 2028, and an $800 million to $1 billion annual run rate in 2029, assuming successful debt financing execution. - Financing: The company plans to use 70% debt / 30% cash financing for future expansion (a shift from 100% self-financing to date) to avoid or mitigate shareholder equity dilution. A term sheet with a lender has already been signed.
Segment performance
DigiPOWER X is in a strategic transition from its legacy cryptocurrency mining business to an AI computing infrastructure business. Legacy crypto mining operations are in planned wind-down, with total Q1 2026 revenue of $6.8 million, down from prior periods as the wind-down progresses. Positive adjusted EBITDA of $1.1 million was achieved in Q1 2026, an improvement from a negative adjusted EBITDA of $1.3 million in Q1 2025. No separate segment-level revenue or margin data was provided for the new AI business, as AI revenue generation just began in May 2026.
Risks & headwinds
Management did not explicitly discuss new material risks or operational failures in this call. General risk factors referenced are those already disclosed in the company's Form 10-Q for the three months ended March 31, 2026, 2025 Annual Report, and other continuous disclosure filings, which could cause actual results to differ materially from forward-looking expectations. The primary dependency for hitting growth and revenue targets is securing planned debt financing on acceptable terms.
Analyst Q&A
Q: Why did the company pivot from crypto mining to AI data centers, and what advantages does it have?
A: Compressed, cyclical Bitcoin mining economics aligned with a generational growth boom in AI compute demand to make the pivot logical. The company's 10-year accumulation of fully owned, power-rich sites with pre-existing utility interconnections and on-site power generation gives a unique speed-to-market advantage that allowed it to secure and deliver a major AI customer contract on an accelerated timeline by the end of 2026.
Q: How does DigiPOWER X's positioning differ from traditional co-location and cloud competitors?
A: It is not a traditional co-location provider or large-scale public cloud. It uses a dual business model combining GPU as a service (vertical integration for higher revenue per megawatt) and long-term co-location (stable 10-year revenue without heavy GPU capital expenditure), optimized around its owned, controlled power capacity to maximize returns on its existing assets.
Q: How will the company fund its expansion going forward, and what is the capital plan?
A: After raising capital and accepting dilution over the prior six months, the company now has $125 million in cash and zero debt, so it will use 70% debt / 30% cash financing to mitigate future equity dilution. A term sheet with a lender is already signed, and the strong balance sheet allows for favorable financing terms to support expansion.
Q: What is the 3-year revenue target outlook?
A: The company targets a $300 million annual revenue run rate in 2027, a $450-$500 million run rate in 2028, and an $800 million to $1 billion run rate in 2029. These targets rely on securing planned debt financing, which management is currently executing on, and leverage the company's unique advantage of pre-secured power access, the main industry bottleneck for AI infrastructure scaling.